You can redeem all types of prepaid codes, including Microsoft gift cards and Xbox Live Gold subscription cards, on your Xbox One console and use them immediately.

To do so, follow these steps:

  1. Sign in to the Microsoft account for which you want to use the prepaid code.
  2. Press the Guide button on your controller.
  3. Select "Games & Apps".
  4. Then select "Redeem Code".
  5. Enter the 25-character prepaid code.
  6. Then select "Done".
  7. When prompted, select "Yes" to confirm the redemption.

Once your code is successfully redeemed, you’ll receive a confirmation message.